Changes now in effect for payday loans

Some changes are now in effect for payday loans.

The maximum total cost of borrowing by a payday lender has been lowered from $21 per $100 loaned, to $14 per $100 loaned.

This adjustment makes Newfoundland and Labrador’s cost of borrowing the lowest in the country.

Payday loans are for small amounts of less than $1,500, with payment terms under 62 days.

Payday loans are regulated in Newfoundland and Labrador through the Payday Loans Regulations, which came into effect in April 2019.